BREAKING NEWS

Now Reading:

Germany puts economic pressure on Turkey


Business

Germany puts economic pressure on Turkey

As the diplomatic row with Turkey grows Germany is threatening to hinder investment with its NATO ally and fellow G20 member state.

Germany’s chambers of commerce say that in the current environment investing in Turkey is hard to contemplate.

Trade between the two amounted to around 37 billion euros in 2016 and Germany remains Turkey’s most important trading partner.

Germany has also hinted that preferential trade tariffs might be in jeopardy – currently Turkey is the only state outside the bloc to enjoy a customs union with the EU.


Then there’s tourism – a lot of Germans visit Turkey, accounting for ten percent of tourist numbers – and Berlin has issued travel warnings.

Last year, the number of foreign visitors to Turkey fell to 25.4 million amid a spate of bombings by Kurdish and Islamist militants, the lowest in nine years.

The travel sector contributes some $30 billion to the economy in a normal year.

And Germany’s foreign minister Sigmar Gabriel has stated that the row will affect how the EU will deal with Turkey’s accession programme to the bloc.

Ankara has responded to the row by telling Berlin not to interfere with its judiciary, which it insists is independent.

Meanwhile the two countries remain closely tied: around four million Germans have relatives in Turkey or are Turkish by origin, meaning that there’s much more than just economics at stake in this row.

Chinese and U.S. business leaders meet to discuss their economic relationship and future challenges

Business

Chinese and U.S. business leaders meet to discuss their economic relationship and future challenges